Selected amounts from H&B co. info system appear as follows:
Cash paid employees for salaries and wages=300,000
Cash collocted from sales customers=1,850,000
Bonds payable=500,000
Cash=150,000
Common stock=60,000
Equipment=840,000
Prepaid insurance=30,000
Inventory=250,000
Prepaid Rent=140,000
Retained earnings=130,000
Salaries and wage expense=328,000
Sales=2,000,000
Five adjustments that need to be made:
a. The equipment purchased on Jan1,2003, has a useful life of 12 years with no salvage value, straight line method is used
b.Interest accrued on the bonds payable is $20,000, as of Dec 31,2003
c. Unexpired insurance at December31,2003=$7000
d. The rent payment of $140,000 covered the 4 months from Dec 1,2003-through March 31
e. Salaries and wages of $28,000 were earned but unpaid at Dec 31,2003
